Ingram Micro Holding Corp

Previous wording

•Advanced Solutions. We offer enterprise-grade hardware and software products aimed at corporate and enterprise users and generally characterized by specific projects, which account for lower volumes than Client and Endpoint Solutions but higher margins individually and collectively in the form of solutions and related services. And while Advanced Solutions requires higher operational expenditures, primarily in the form of technical capabilities to serve the market, the operating margin delivered by this business is also generally stronger than Client and Endpoint Solutions. Within this product category, we offer servers, storage, networking, hybrid and software-defined solutions, cyber security, power and cooling and virtualization (software and hardware) solutions. This category also includes training, professional services and financing solutions related to these product sets. We also offer customers data capture-point of sale (“DC / POS”), physical security, audio visual & digital signage, Unified Communications and Collaboration, and Telephony, Internet-of-Things (smart office/home automation) and artificial intelligence products.

Current wording

•Advanced Solutions. We offer enterprise-grade hardware and software products aimed at corporate and enterprise users and generally characterized by specific projects, which account for lower volumes than Client and Endpoint Solutions but higher margins individually and collectively in the form of solutions and related services. And while Advanced Solutions requires higher operational expenditures, primarily in the form of technical capabilities to serve the market, the operating margin delivered by this business is also generally stronger than Client and Endpoint Solutions. Within this product category, we offer servers, storage, networking, hybrid and software-defined solutions, cyber security, power and cooling and virtualization (software and hardware) solutions. This category also includes training, professional services and financing solutions related to these product sets. We also offer customers data capture-point of sale (“DC / POS”), physical security, audio visual & digital signage, Unified Communications and Collaboration, Internet-of-Things (smart office/home automation) and artificial intelligence products.

Previous wording

•Cloud-based Solutions. Our cloud portfolio comprises third-party services and subscriptions spanning a breadth of products from solution software through infrastructure-as-a-service. As technology consumption increasingly moves to anything-as-a-service, we have expanded our cloud solutions to more than 200 third-party cloud-based services or subscription offerings, including business applications, security, communications and collaboration, cloud enablement solutions and infrastructure-as-a-service. Also included here are the offerings of our CloudBlue business, which provides customers with multichannel and multi-tier catalog management, subscription management, billing and orchestration capabilities through a software-as-a-service model.

Current wording

•Cloud-based Solutions. Our cloud portfolio comprises third-party services and subscriptions spanning a breadth of products from solution software through infrastructure-as-a-service. As technology consumption increasingly moves to anything-as-a-service, we have expanded our cloud solutions to more than 200 third-party cloud-based services or subscription offerings, including business applications, security, communications and collaboration, cloud enablement solutions and infrastructure-as-a-service. Also included here are the offerings of our CloudBlue business, which provides customers with multichannel and multi-tier catalog management, subscription management, billing and orchestration capabilities through a software-as-a-service model. Our CloudBlue operations are a part of thedivestiture committed to during the second quarter of 2025 (see the “Held for Sale” section in Note 2, “Summary of Significant Accounting Policies” to our unaudited condensed consolidated financial statements).

Previous wording

We have instituted a number of cost reduction and profit enhancement programs over the years, which in certain years included reorganization actions across various parts of our business to respond to changes in the economy and to further enhance productivity and profitability. These actions have included the rationalization and re-engineering of certain roles and processes, resulting in the reduction of headcount and consolidation of certain facilities.

Current wording

We have instituted a number of cost reduction and profit enhancement programs over the years, which in certain years included restructuring actions across various parts of our business to respond to changes in the economy and to further enhance productivity and profitability. These actions have included the rationalization and re-engineering of certain roles and processes, resulting in the reduction of headcount and consolidation of certain facilities.

Previous wording

We do not allocate stock-based compensation expense or time-vested and performance-vested cash-based compensation recognized to our reportable segments and certain Corporate costs; therefore, we are reporting these amounts separately.

Current wording

We do not allocate stock-based compensation expense or time-vested and performance-vested cash-based compensation recognized to our reportable segments or certain Corporate costs; therefore, we are reporting these amounts separately.

Previous wording

Our Asia-Pacific income from operations margin decreased 40 basis points in the Thirteen Weeks Ended March 29, 2025 compared to the Thirteen Weeks Ended March 30, 2024, primarily as a result of lower gross margin achievement from three primary factors: (1) geographic mix more towards our lower margin, lower-cost-to-serve China market, (2) a heavier concentration of lower margin mobility sales and (3) a heightened competitive market in India creating market pressure on overall margin. These factors were partially offset by a decrease in SG&A expenses as a percentage of net sales in the region. Most notably, compensation and headcount expenses decreased by 31 basis points and restructuring costs decreased by 11 basis points, partially offset by an increase in bad debt expense of 12 basis points. The translation impact of foreign currencies relative to the U.S. dollar had no impact on the year-over-year comparison of the region’s income from operations margin.

Current wording

Our Asia-Pacific income from operations margin decreased 80 basis points in the Thirteen Weeks Ended June 28, 2025 compared to the Thirteen Weeks Ended June 29, 2024, primarily as a result of lower gross margin achievement from three primary factors: (1) geographic mix more towards our lower-margin, lower-cost-to-serve China market, (2) a heavier concentration of lower-margin mobility sales and (3) a heightened competitive market in India creating market pressure on overall margin. These factors were partially offset by a decrease in SG&A expenses as a percentage of net sales in the region. Most notably, compensation and headcount expenses decreased by 22 basis points and rental and occupancy costs decreased by 3 basis points. The translation impact of foreign currencies relative to the U.S. dollar had a positive impact of 1 basis point on the year-over-year comparison of the region’s income from operations margin.

Previous wording

Our EMEA income from operations margin increased 23 basis points in the Thirteen Weeks Ended March 29, 2025 compared to the Thirteen Weeks Ended March 30, 2024 primarily due to a reduction in restructuring costs, which decreased by 31 basis points of net sales. EMEA also saw improved leverage on SG&A expenses, which combined to help offset softer gross margins on the shift in sales mix factors described above. The translation impact of foreign currencies relative to the U.S. dollar had a positive impact of 1 basis point on the year-over-year comparison on the region’s income from operations margin.

Current wording

Our Latin American income from operations margin increased 19 basis points in the Thirteen Weeks Ended June 28, 2025 compared to the Thirteen Weeks Ended June 29, 2024. This improvement was primarily driven by a decrease in SG&A expenses as a percentage of net sales in the region. Most notably, compensation and headcount expenses decreased by 23 basis points, rental and occupancy costs decreased by 9 basis points and bad debt expense decreased by 8 basis points. These factors helped to offset softer gross margins on the shift in sales mix factors described above. The translation impact of foreign currencies relative to the U.S. dollar had a negative impact of 6 basis points on the year-over-year comparison of the region’s income from operations margin.

Previous wording

Stock-based compensation expense increased by $2,764 in the Thirteen Weeks Ended March 29, 2025 compared to the Thirteen Weeks Ended March 30, 2024, primarily due to the issuance of time-vesting restricted stock units that were granted to certain key employees in connection with the IPO (see Note 3, “Employee Awards,” to our unaudited condensed consolidated financial statements).

Current wording

Stock-based compensation expense increased by $6,325 in the Thirteen Weeks Ended June 28, 2025 compared to the Thirteen Weeks Ended June 29, 2024, due to employee grants of time-vesting and performance-vesting restricted stock units in connection with and subsequent to our IPO (see Note 3, “Employee Awards,” to our unaudited condensed consolidated financial statements).

Previous wording

Total other (income) expense consists primarily of interest income, interest expense, foreign currency exchange gains and losses, and other non-operating gains and losses. We incurred total other (income) expense of $100,461 in the Thirteen Weeks Ended March 29, 2025 compared to $93,440 in the Thirteen Weeks Ended March 30, 2024. The increase is largely driven by an increase of $11,391 in net foreign currency exchange loss driven by a more volatile foreign exchange environment in the current year. Additionally, the Thirteen Weeks Ended March 29, 2025 includes an unrealized loss of $3,622, while the Thirteen Weeks Ended March 30, 2024 includes an unrealized gain of $4,591 related to our investments held in Rabbi Trust. This was partially offset by a decrease in interest expense of $9,723, primarily as a result of lower average debt outstanding in the current year period due in particular to voluntary principal payments of $483,100 on our Term Loan Credit Facility made in fiscal year 2024. Additionally, we voluntarily repaid an incremental $125,000 on our Term Loan Credit Facility in late March 2025.

Current wording

Total other (income) expense consists primarily of interest income, interest expense, foreign currency exchange gains and losses, and other non-operating gains and losses. We incurred total other (income) expense of $82,931 in the Thirteen Weeks Ended June 28, 2025 compared to $97,965 in the Thirteen Weeks Ended June 29, 2024. The decrease is largely driven by a reduction of $14,657 in other expense (income) driven primarily by the fact that the Thirteen Weeks Ended June 28, 2025 includes a gain in fair value of certain equity investments of $5,786, while the Thirteen Weeks Ended June 29, 2024 includes an equity loss in fair value of certain equity investments of $4,161. Additionally, we recognized an unrealized gain of $5,921 in the Thirteen Weeks Ended June 28, 2025 compared to an unrealized gain of $337 in the Thirteen Weeks Ended June 29, 2024 related to our investments held in our Rabbi Trust. Additionally, interest expense decreased by $14,040, primarily as a result of lower average debt outstanding in the current quarter due in particular to voluntary principal payments of $483,100 on our senior secured term loan credit facility (the “Term Loan Credit Facility”) made in fiscal year 2024. Additionally, we voluntarily repaid an incremental $125,000 on our Term Loan Credit Facility in late March 2025. This was partially offset by an increase of $13,674 in net foreign currency exchange loss driven primarily by the weakening of the U.S. dollar.

Previous wording

We recorded an income tax provision of $31,214, or an effective tax rate of 31.1%, in the Thirteen Weeks Ended March 29, 2025, compared to $27,129, or an effective tax rate of 35.4% in the Thirteen Weeks Ended March 30, 2024. The tax provision for the Thirteen Weeks Ended March 29, 2025, included $3,098 of tax expense, or 3.1% of the effective tax rate, which is associated with withholding tax expense from our business operations in the Latin America region, primarily from our Miami Export business. The tax provision for the Thirteen Weeks Ended March 30, 2024, included $2,652 of tax expense, or 3.5% of the effective tax rate, which is associated with withholding tax expense from our business operations in the Latin America region, primarily from our Miami Export business. In addition, the tax provision for the Thirteen Weeks Ended March 30, 2024, also included $2,151 of tax expense, or 2.8% of the effective tax rate, due to foreign exchange losses generated by a foreign subsidiary that is under valuation allowance.

Current wording

We recorded an income tax provision of $22,059, or an effective tax rate of 36.8%, in the Thirteen Weeks Ended June 28, 2025, compared to $28,578, or an effective tax rate of 34.4% in the Thirteen Weeks Ended June 29, 2024. The tax provision for the Thirteen Weeks Ended June 28, 2025 included $4,721 of tax expense, or 7.9 percentage points of the effective tax rate, which is associated with withholding tax expense from our business operations in the Latin America region, primarily from our Miami Export business, while in the Thirteen Weeks Ended June 29, 2024, this same withholding tax impact was $3,273 of tax expense, or 3.9 percentage points of the effective tax rate. The tax provision for the Thirteen Weeks Ended June 29, 2024, also included $1,678 of tax expense, or 2.0 percentage points of the effective tax rate, due to a reduction in estimated U.S. foreign tax credit utilization in 2024.

Previous wording

Consolidated net sales were $12,280,843 for the Thirteen Weeks Ended March 29, 2025, compared to $11,334,934 for the Thirteen Weeks Ended March 30, 2024. The 8.3% increase for the Thirteen Weeks Ended March 29, 2025 compared to the Thirteen Weeks Ended March 30, 2024, was primarily a result of net sales growth in the Asia-Pacific, North America and EMEA regions, partially offset by lower net sales in our Latin America region. The increase was driven by growth in net sales across all product categories in the Thirteen Weeks Ended March 29, 2025 compared to the Thirteen Weeks Ended March 30, 2024. Client and endpoint solutions increased by 12%, advanced solutions increased by 2%, cloud-based solutions increased by 5% and Other services increased by 7%. The translation impact of foreign currencies relative to the U.S. dollar negatively impacted the comparison of our global net sales year-over-year by approximately 2.4%. On a constant currency basis, net sales of client and endpoint solutions increased by 15%, advanced solutions increased by 4%, cloud-based solutions increased by 8% and Other services increased by 8%.

Current wording

Consolidated net sales were $25,074,799 for the Twenty-Six Weeks Ended June 28, 2025 compared to $22,876,373 for the Twenty-Six Weeks Ended June 29, 2024. The 9.6% increase for the Twenty-Six Weeks Ended June 28, 2025 compared to the Twenty-Six Weeks Ended June 29, 2024, was the result of growth in net sales in our Asia-Pacific, North America, and EMEA regions, partially offset by lower net sales in our Latin America region. The increase was driven by growth in net sales across all product categories in the Twenty-Six Weeks Ended June 28, 2025 compared to the Twenty-Six Weeks Ended June 29, 2024. Client and endpoint solutions increased by 13%, advanced solutions increased by 4%, cloud-based solutions increased by 5% and Other services increased by 4%. The translation impact of foreign currencies relative to the U.S. dollar negatively impacted the comparison of our global net sales year-over-year by 0.9%. On a constant currency basis, net sales of client and endpoint solutions increased by 14%, advanced solutions increased by 4%, cloud-based solutions increased by 7%, and Other services increased by 3%.

Previous wording

The $394,213, or 9.8%, increase in North American net sales for the Thirteen Weeks Ended March 29, 2025 compared to the Thirteen Weeks Ended March 30, 2024, was primarily driven by a 13% increase in net sales of client and endpoint solutions, namely notebooks and desktops in the United States. Additionally, net sales of advanced solutions offerings increased by 7%, driven by growth in server, infrastructure software and cyber security net sales in the United States, with a heavier concentration of these sales into large enterprise customers. Net sales of Other services also increased by 1% in the Thirteen Weeks Ended March 29, 2025 compared to the Thirteen Weeks Ended March 30, 2024, driven by our Reverse Logistics and Repair business in Canada. These factors were partially offset by a 1% decrease in net sales of cloud-based solutions, most notably in Canada in the Thirteen Weeks Ended March 29, 2025 compared to the Thirteen Weeks Ended March 30, 2024, as the comparison to the prior year was particularly challenging on a robust performance for cloud-based solutions in North America in the Thirteen Weeks Ended March 30, 2024.

Current wording

The $996,132, or 11.8%, increase in our North American net sales for the Twenty-Six Weeks Ended June 28, 2025 compared to the Twenty-Six Weeks Ended June 29, 2024, was primarily driven by a 13% increase in net sales of client and endpoint solutions, namely notebooks and desktops in the United States. Additionally, net sales of advanced solutions offerings increased by 12%, driven by growth in server net sales in the United States. These results were partially offset by a decrease of 11% in net sales of Other services driven by declines in our U.S. Reverse Logistics and Repair business, as well as a decrease of 2% in cloud-based solutions driven by declines in both the United States and Canada during the Twenty-Six Weeks Ended June 28, 2025 compared to the Twenty-Six Weeks Ended June 29, 2024.

Previous wording

The $20,433, or 0.6%, increase in EMEA net sales for the Thirteen Weeks Ended March 29, 2025 compared to the Thirteen Weeks Ended March 30, 2024, was a result of a 4% increase in net sales of client and endpoint solutions driven by growth in notebooks and desktops in the United Kingdom and desktops in Turkey, partially offset by declines in peripherals in Germany, notebooks in Switzerland and notebooks, peripherals and accessories in France. Mobility distribution also grew in the region, driven primarily by tablets in Germany and Italy. Additionally, net sales of Other services increased by 11% due to growth in our Reverse Logistics and Repair business in the United Kingdom, while net sales of cloud-based solutions increased by 27%. These results were partially offset by a 7% decrease in net sales of advanced solutions offerings primarily due to declines in networking in Germany and the United Kingdom, declines in specialty products in the United Arab Emirates, as well as declines in server net sales in Belgium. The translation impact of foreign currencies relative to the U.S. dollar had a negative impact of 2% on the year-over year comparison of the region’s net sales. On a constant currency basis, net sales of client and endpoint solutions increased by 7%, Other services increased by 13% and cloud-based solutions increased by 30%, while advanced solutions offerings decreased by 5%.

Current wording

The $179,988, or 2.7%, increase in EMEA net sales for the Twenty-Six Weeks Ended June 28, 2025 compared to the Twenty-Six Weeks Ended June 29, 2024 was a result of a 5% increase in net sales of client and endpoint solutions driven by growth in notebooks in the United Kingdom and Poland and desktops in the United Kingdom, Germany, and Turkey, partially offset by declines in mobility distribution in the United Kingdom and peripherals in Germany. Additionally, net sales of Other services increased by 18% due to growth in our Reverse Logistics and Repair business in France, while net sales of cloud-based solutions increased by 31%. These results were partially offset by a 2% decrease in net sales of advanced solutions offerings primarily due to declines in specialty products in the United Arab Emirates. The translation impact of foreign currencies relative to the U.S. dollar had a positive impact of 1% on the year-over year comparison of the region’s net sales. On a constant currency basis, net sales of client and endpoint solutions increased by 3%, Other services increased by 16%, and cloud-based solutions increased by 30%, while advanced solutions offerings decreased by 3%.

Previous wording

The $606,004, or 20.1%, increase in Asia-Pacific net sales for the Thirteen Weeks Ended March 29, 2025 compared to the Thirteen Weeks Ended March 30, 2024 was driven by a 24% increase in net sales of client and endpoint solutions, due to growth in mobility distribution, particularly smartphones in China and India. Net sales of desktops and tablets were also strong in China, while consumer electronics grew solidly in India. Net sales of advanced solutions offerings increased by 10%, driven by growth in networking in China, partially offset by declines in server net sales in Singapore and Malaysia, networking in India, and infrastructure software in Hong Kong. Additionally, net sales of cloud-based solutions increased by 12%, driven particularly by strength in India. These results were partially offset by a 13% decrease in net sales of Other services. The translation impact of foreign currencies relative to the U.S. dollar had a negative impact of approximately 3% on the year-over-year comparison of the region’s net sales. On a constant currency basis, net sales for client and endpoint solutions increased by 27%, advanced solutions offerings increased by 13% and cloud-based solutions increased by 15%, while Other services decreased by 11%.

Current wording

The $1,089,883, or 18.1%, increase in Asia-Pacific net sales for the Twenty-Six Weeks Ended June 28, 2025 compared to the Twenty-Six Weeks Ended June 29, 2024 was driven by a 26% increase in net sales of client and endpoint solutions, due to growth in mobility distribution, particularly smartphones in China. Additionally, net sales of desktops and tablets grew in China, while net sales of consumer electronics grew in India. Cloud-based solutions net sales grew by 6% driven by growth in India, and Other services net sales grew by 6%. Advanced solutions offerings net sales were flat compared to the prior year period. The translation impact of foreign currencies relative to the U.S. dollar had a negative impact of 2% on the year-over-year comparison of the region’s net sales. On a constant currency basis, net sales for client and endpoint solutions increased by 28%, advanced solutions offerings increased by 1%, cloud-based solutions increased by 8% and Other services increased by 7%.

Previous wording

Gross profit was $828,762 for the Thirteen Weeks Ended March 29, 2025, compared to $834,938 for the Thirteen Weeks Ended March 30, 2024. Gross margin decreased by 62 basis points in the Thirteen Weeks Ended March 29, 2025 compared to the Thirteen Weeks Ended March 30, 2024. The slight decrease in gross profit dollars, and the 62 basis point decrease in gross margin was driven by a shift in sales mix towards our lower-margin client and endpoint solutions, particularly in EMEA and Asia-Pacific as well as a decline in gross margin in both client and endpoint solutions and advanced solutions product categories during the Thirteen Weeks Ended March 29, 2025 compared to the Thirteen Weeks Ended March 30, 2024, which was largely a result of a combination of customer mix more towards large enterprise customers, particularly in North America, and geographic mix towards our lower margin, lower cost-to-serve Asia Pacific region. The heightened competitive pricing environment we saw in the India market also contributed to the lower gross margins during the current year quarter. The impact of foreign currencies relative to the U.S. dollar had a negative impact of 2 basis points on the year-over-year comparison of gross margin.

Current wording

Gross profit was $1,667,921 for the Twenty-Six Weeks Ended June 28, 2025, compared to $1,663,368 for the Twenty-Six Weeks Ended June 29, 2024. Gross margin decreased by 62 basis points in the Twenty-Six Weeks Ended June 28, 2025 compared to the Twenty-Six Weeks Ended June 29, 2024. The increase in gross profit dollars was primarily attributable to the previously described increases in our net sales. The decrease in gross margin was driven by a shift in sales mix towards our lower-margin client and endpoint solutions, particularly in Asia-Pacific, Latin America, and EMEA, as well as a decline in gross margin in advanced solutions driven by a mix shift more towards lower-margin servers during the Twenty-Six Weeks Ended June 28, 2025 compared to the Twenty-Six Weeks Ended June 29, 2024. The customer mix has also skewed more heavily towards large enterprise customers, and geographic mix towards our lower-margin, lower-cost-to-serve Asia-Pacific region in the current year. The decrease in gross margin also includes the impact of a write-down impact of $10,480 recorded in cost of sales, or 4 basis points of net sales, in connection with the held for sale accounting for the planned sale of a group of assets related to non-core operations in the North America region. The translation impact of foreign currencies relative to the U.S. dollar had a negative impact of 1 basis point on the year-over-year comparison of gross margin.

Previous wording

During the Thirteen Weeks Ended March 29, 2025, we recognized $1,933 of restructuring costs, which relates to efforts that began in the fourth quarter of 2024 to enhance organization efficiency and strengthen customer service capabilities to better position the Company for long-term, sustainable growth. These charges included organizational and staffing changes as well as headcount reductions. During the Thirteen Weeks Ended March 30, 2024, we recognized $22,665 of restructuring costs, which represented further actions taken under our global restructuring plan originally announced in July 2023. See Note 8 “Restructuring Costs” for further information regarding the restructuring activities during the Thirteen Weeks Ended March 29, 2025 and the Thirteen Weeks Ended March 30, 2024.

Current wording

During the Twenty-Six Weeks Ended June 28, 2025, we recognized $1,954 of restructuring costs, or 1 basis point of net sales, which relates to efforts that began in the fourth quarter of 2024 to enhance organization efficiency and strengthen customer service capabilities to better position the Company for long-term, sustainable growth. These charges included organizational and staffing changes as well as headcount reductions. During the Twenty-Six Weeks Ended June 29, 2024, we recognized $22,525 of restructuring costs, or 10 basis points of net sales, which represented further actions taken under our global restructuring plan originally announced in July 2023 (see Note 8 “Restructuring Costs” for further information).

Previous wording

Our Latin American income from operations margin increased 8 basis points in the Thirteen Weeks Ended March 29, 2025 compared to the Thirteen Weeks Ended March 30, 2024. This improvement was primarily driven by higher gross margin achievement on net sales of both advanced solutions and cloud-based solutions. Additionally, charges related to inventory write-offs in the region decreased by 26 basis points in the Thirteen Weeks Ended March 29, 2025 compared to the Thirteen Weeks Ended March 30, 2024. These factors combined contributed to a positive impact to income from operations margin of 56 basis points, which was partially offset by an increase in SG&A expenses as a percentage of net sales in the region, most notably, compensation and headcount expenses, which increased by 38 basis points largely as a result of the decrease in net sales described above, as well as integration and transition costs, which increased by 16 basis points. The translation impact of foreign currencies relative to the U.S. dollar had a negative impact of 17 basis points on the year-over-year comparison of the region’s income from operations margin.

Current wording

Our Latin American income from operations margin increased 13 basis points in the Twenty-Six Weeks Ended June 28, 2025 compared to the Twenty-Six Weeks Ended June 29, 2024. The improvement was primarily driven by higher gross margin achievement on net sales of advanced solutions, as well as a 15 basis point decrease in charges related to inventory write-offs in the region during the Twenty-Six Weeks Ended June 28, 2025 compared to the Twenty-Six Weeks Ended June 29, 2024. The region also benefited from a reduction in SG&A expense as a percentage of net sales. Most notably, depreciation expense decreased by 6 basis points and bad debt expense decreased by 6 basis points. These were partially offset by an increase in compensation and headcount expenses of 8 basis points. The translation impact of foreign currencies relative to the U.S. dollar had a negative impact of 12 basis points on the year-over-year comparison of the region’s income from operations margin.

Previous wording

In the Thirteen Weeks Ended March 29, 2025, Corporate costs included $1,287 of stranded costs resulting from the termination of certain operations and IT services under the transition services agreement with CMA CGM Group following the CLS Sale in 2022, as well as $1,241 related to investments in certain initiatives to accelerate our growth and profitability and optimize operations. In the Thirteen Weeks Ended March 30, 2024, Corporate costs consisted primarily of $6,250 of advisory fees paid to Platinum Advisors, and $2,379 related to investments in certain initiatives to accelerate our growth and profitability and optimize our operations.

Current wording

In the Twenty-Six Weeks Ended June 28, 2025, Corporate costs included $2,580 of stranded costs resulting from the termination of certain operations and IT services under the transition services agreement with CMA CGM Group following the CLS Sale in 2022, as well as $1,462 related to investments in certain initiatives to accelerate our growth and profitability and optimize our operations. In the Twenty-Six Weeks Ended June 29, 2024, Corporate costs included $12,500 of advisory fees paid to Platinum Advisors and $4,924 related to investments in certain initiatives to accelerate our growth and profitability and optimize our operations.

Previous wording

Our cash and cash equivalents totaled $881,637 and $918,401 at March 29, 2025 and December 28, 2024, respectively. We finance our working capital needs and investments in the business largely through net income before noncash items, available cash, trade and supplier credit and various financing facilities. As a distributor, our business requires significant investment in working capital, particularly trade accounts receivable and inventory, which is partially financed by vendor trade accounts payable. As a general rule, when sales volumes are increasing, our net investment in working capital dollars typically increases, which generally results in decreased cash flow generated from operating activities. Conversely, when sales volume decreases, our net investment in working capital typically decreases, which generally results in increases in cash flows generated from operating activities. Working capital dollars are calculated at any point in time by adding the trade accounts receivable and inventory less the trade accounts payable balance at that point in time. Our working capital dollars were $4,312,934 at March 29, 2025 and $4,142,013 at December 28, 2024.

Current wording

Our cash and cash equivalents totaled $856,668 and $918,401 at June 28, 2025 and December 28, 2024, respectively. We finance our working capital needs and investments in the business largely through net income before noncash items, available cash, trade and supplier credit and various financing facilities. As a distributor, our business requires significant investment in working capital, particularly trade accounts receivable and inventory, which is partially financed by vendor trade accounts payable. As a general rule, when sales volumes are increasing, our net investment in working capital dollars typically increases, which generally results in decreased cash flow generated from operating activities. Conversely, when sales volume decreases, our net investment in working capital typically decreases, which generally results in increases in cash flows generated from operating activities. Working capital dollars are calculated at any point in time by adding the trade accounts receivable and inventory less the trade accounts payable balance at that point in time. Our working capital dollars were $4,611,017 at June 28, 2025 and $4,142,013 at December 28, 2024.

Previous wording

Investing activities provided net cash of $58,291 and $24,107 during the Thirteen Weeks Ended March 29, 2025 and Thirteen Weeks Ended March 30, 2024, respectively. The net cash provided during the Thirteen Weeks Ended March 29, 2025 was primarily driven by proceeds from the deferred purchase price of factored receivables of $71,031, partially offset by capital expenditures of $29,737. The net cash provided during the Thirteen Weeks Ended March 30, 2024 was primarily driven by proceeds from the deferred purchase price of factored receivables of $69,060, partially offset by capital expenditures of $35,579.

Current wording

Investing activities provided net cash of $116,718 and $47,067 during the Twenty-Six Weeks Ended June 28, 2025 and Twenty-Six Weeks Ended June 29, 2024, respectively. The net cash provided during the Twenty-Six Weeks Ended June 28, 2025 was primarily driven by proceeds from the deferred purchase price of factored receivables of $141,445, proceeds from sale of equity investments of $20,805, and proceeds from notes receivable of $20,510, partially offset by capital expenditures of $64,961 and issuance of notes receivable to certain customers of $12,501. The net cash provided during the Twenty-Six Weeks Ended June 29, 2024 was primarily driven by proceeds from the deferred purchase price of factored receivables of $128,515 and proceeds from notes receivable of $21,597, partially offset by capital expenditures of $68,688 and issuance of notes receivable to certain customers of $43,374.

Previous wording

Financing activities provided net cash of $96,759 and $3,516 during the Thirteen Weeks Ended March 29, 2025 and Thirteen Weeks Ended March 30, 2024, respectively. The net cash provided during the Thirteen Weeks Ended March 29, 2025 was primarily driven by net proceeds from revolving and other credit facility of $235,374 and gross proceeds from other debt of $17,228, partially offset by the voluntary repayment of our term loan of $125,000, the dividend payment of $17,377 and gross repayments of other debt of $15,854. The net cash provided during the Thirteen Weeks Ended March 30, 2024 primarily reflects gross proceeds from other debt for $24,249 and net proceeds from revolving and other credit facilities for $22,490, partially offset by gross repayments of other debt of $30,015, and the change in unremitted cash collections from servicing factored receivables of $12,274.

Current wording

Financing activities provided net cash of $272,973 and used net cash of $310,663 during the Twenty-Six Weeks Ended June 28, 2025 and Twenty-Six Weeks Ended June 29, 2024, respectively. The net cash provided during the Twenty-Six Weeks Ended June 28, 2025 was primarily driven by net proceeds from revolving and other credit facility of $452,161 and gross proceeds from other debt of $29,820, partially offset by voluntary repayments of our term loan totaling $125,000, dividends paid to stockholders of $40,828 and gross repayments of other debt of $32,574. The net cash used during the Twenty-Six Weeks Ended June 29, 2024 was primarily driven by the voluntary repayment of our term loan totaling $150,000, net repayments of revolving and other credit facility of $136,918, gross repayments of other debt of $49,833, the change in unremitted cash collections from servicing factored receivables of $8,630 and dividends paid to stockholders of $6,174, partially offset by gross proceeds from other debt of $41,826.

Previous wording

We have a range of financing facilities which are diversified by type, maturity and geographic region with various financial institutions worldwide with a total capacity of approximately $7,480,689, of which $3,482,724 was outstanding, at March 29, 2025. These facilities have staggered maturities through 2031. Our cash and cash equivalents totaled $881,637 and $918,401 at March 29, 2025 and December 28, 2024, respectively, of which $809,210 and $856,051, respectively, resided in operations outside of the United States. Cash and cash equivalents located in China were approximately 20% and 10% of our total cash and cash equivalents at March 29, 2025 and December 28, 2024, respectively, along with lesser amounts in Brazil, Luxembourg, Malaysia, Mexico, India, Canada, and Australia. Cash held by foreign subsidiaries, including China, can generally be used to finance local operations and cannot, under the current legal and regulatory environment, be transferred to finance other foreign subsidiaries’ operations. Additionally, our ability to repatriate these funds to the United States in an economical manner may be limited. Our cash balances are deposited and/or invested with various financial institutions globally that we endeavor to monitor regularly for credit quality. However, we are exposed to risk of loss on funds deposited with the various financial institutions and money market mutual funds, and we may experience significant disruptions in our liquidity needs if one or more of these financial institutions were to suffer bankruptcy or similar restructuring. As of March 29, 2025 and December 28, 2024, we had book overdrafts of $425,969 and $544,029, respectively, representing checks issued on disbursement bank accounts but not yet paid by such banks. These amounts are classified as accounts payable in our Condensed Consolidated Balance Sheets and are typically paid by the banks in a relatively short period of time.

Current wording

We have a range of financing facilities which are diversified by type, maturity and geographic region with various financial institutions worldwide with a total capacity of approximately $7,526,211, of which $3,723,645 was outstanding, at June 28, 2025. These facilities have staggered maturities through 2031. Our cash and cash equivalents totaled $856,668 and $918,401 at June 28, 2025 and December 28, 2024, respectively, of which $790,376 and $856,051, respectively, resided in operations outside of the United States. Cash and cash equivalents located in China were approximately 10% of our total cash and cash equivalents at June 28, 2025 and December 28, 2024, along with lesser amounts in Brazil, Luxembourg, Malaysia, Mexico, Canada, and Australia. Cash held by foreign subsidiaries, including China, can generally be used to finance local operations and cannot, under the current legal and regulatory environment, be transferred to finance other foreign subsidiaries’ operations. Additionally, our ability to repatriate these funds to the United States in an economical manner may be limited. Our cash balances are deposited and/or invested with various financial institutions globally that we endeavor to monitor regularly for credit quality. However, we are exposed to risk of loss on funds deposited with the various financial institutions and money market mutual funds, and we may experience significant disruptions in our liquidity needs if one or more of these financial institutions were to suffer bankruptcy or similar restructuring. As of June 28, 2025 and December 28, 2024, we had book overdrafts of $360,002 and $544,029, respectively, representing checks issued on disbursement bank accounts but not yet paid by such banks. These amounts are classified as accounts payable in our Condensed Consolidated Balance Sheets and are typically paid by the banks in a relatively short period of time.

Previous wording

On July 2, 2021, we entered into the Term Loan Credit Facility for $2,000,000, the proceeds of which were also used to, among other things, finance a portion of the acquisition of Ingram Micro by Platinum and repay certain of our existing indebtedness. We recognized $1,920,761, net of debt issuance costs and discount of $59,239 and $20,000, respectively, related to this facility. The Term Loan Credit Facility had an original maturity of July 2, 2028 and amortized in equal quarterly installments aggregating to 1.00% per annum. In June 2023, we voluntarily prepaid $500,000 on our Term Loan Credit Facility over and above normal quarterly installments, which, as a result of this prepayment, are no longer mandatory. In September 2023, we refinanced our Term Loan Credit Facility, reducing the interest rate spread over Secured Overnight Financing Rate ("SOFR") by 50 basis points. In September 2024, we refinanced our Term Loan Credit Facility again, reducing the interest rate spread over SOFR by 25 basis points, eliminating the credit-spread adjustments and extending the maturity date to September 19, 2031. Borrowings under the Term Loan Credit Facility bear interest at a rate per annum equal to, at our option, either (1) the base rate (which is the highest of (a) the then-current federal funds rate set by the Federal Reserve Bank of New York, plus 0.50%, (b) the prime rate on such day and (c) the one-month SOFR rate published on such date plus 1.00% and is subject to a 1.50% floor) plus a margin of 1.75% or (2) one-, three- or six-month SOFR (subject to a 0.50% floor) plus a margin of 2.75%. In connection with these refinancings, we repaid an incremental $50,000 and $100,000 in September 2023 and September 2024, respectively, of our Term Loan Credit Facility and in June 2024 we voluntarily repaid an incremental $150,000. Upon the closing of the IPO, we used the net proceeds from the offering to repay $233,100 of debt outstanding under our Term Loan Credit Facility and in March 2025 we voluntarily repaid an incremental$125,000. As of March 29, 2025 and December 28, 2024, $762,106 and $885,882 respectively, remained outstanding under the Term Loan Credit Facility.

Current wording

On July 2, 2021, we entered into the Term Loan Credit Facility for $2,000,000, the proceeds of which were also used to, among other things, finance a portion of the acquisition of Ingram Micro by Platinum and repay certain of our existing indebtedness. We recognized $1,920,761, net of debt issuance costs and discount of $59,239 and $20,000, respectively, related to this facility. The Term Loan Credit Facility had an original maturity of July 2, 2028 and amortized in equal quarterly installments aggregating to 1.00% per annum. In June 2023, we voluntarily prepaid $500,000 on our Term Loan Credit Facility over and above normal quarterly installments, which, as a result of this prepayment, are no longer mandatory. In September 2023, we refinanced our Term Loan Credit Facility, reducing the interest rate spread over Secured Overnight Financing Rate (“SOFR”) by 50 basis points. In September 2024, we refinanced our Term Loan Credit Facility, reducing the interest rate spread over SOFR by 25 basis points, eliminating the credit-spread adjustments and extending the maturity date to September 19, 2031. In June 2025, we again amended the Term Loan Credit Facility to reduce the interest rate by 50 basis points. Borrowings under the Term Loan Credit Facility now bear interest at a rate per annum equal to, at our option, either (1) the base rate (which is the highest of (a) the then-current federal funds rate set by the Federal Reserve Bank of New York, plus 0.50%, (b) the prime rate on such day and (c) the one-month SOFR rate published on such date plus 1.00% and is subject to a 1.50% floor) plus a margin of 1.25% or (2) one-, three- or six-month SOFR (subject to a 0.50% floor) plus a margin of 2.25%. In connection with these refinancings, we repaid an incremental $50,000 and $100,000 in September 2023 and September 2024, respectively, of our Term Loan Credit Facility and in June 2024 we voluntarily repaid an incremental $150,000. Upon the closing of the IPO, we used the net proceeds from the offering to repay $233,100 of debt outstanding under our Term Loan Credit Facility and in March 2025 we voluntarily repaid an incremental $125,000. As of June 28, 2025 and December 28, 2024, $762,311 and $885,882 respectively, remained outstanding under the Term Loan Credit Facility.

Previous wording

On July 2, 2021, we entered into new ABL Credit Facilities (as defined below) providing for senior secured asset-based, multi-currency revolving loans and letter of credit availability in an aggregate amount of up to $3,500,000 (the “ABL Revolving Credit Facility”) and a senior secured asset-based term loan facility of $500,000 (the “ABL Term Loan Facility”), together with the ABL Revolving Credit Facility, the ("ABL Credit Facilities"), both of which had contractual maturity dates in July 2026. The ABL Term Loan Facility was repaid fully in April 2022. We may borrow under the ABL Revolving Credit Facility only up to our available borrowing base capacity. Borrowings under the ABL Revolving Credit Facility bear interest at a rate per annum equal to, at our option, either (1) the base rate plus a margin ranging (based on the availability under the ABL Revolving Credit Facility) from 0.25% to 0.75% or (2) SOFR (subject to a 0% floor) plus a margin ranging (based on the availability under the ABL Revolving Credit Facility) from 1.25% to 1.75%. In September 2024, we amended the ABL Revolving Credit Facility to, among other things, extend the maturity date to September 20, 2029. As of March 29, 2025 and December 28, 2024, we had borrowings of $20,000 and $0, respectively, under this facility. The weighted-average interest rate on the outstanding borrowings under this facility, as amended, was 6.0% and 6.7% per annum at March 29, 2025 and December 28, 2024, respectively.

Current wording

On July 2, 2021, we entered into new ABL Credit Facilities (as defined below) providing for senior secured asset-based, multi-currency revolving loans and letter of credit availability in an aggregate amount of up to $3,500,000 (the “ABL Revolving Credit Facility”) and a senior secured asset-based term loan facility of $500,000 (the “ABL Term Loan Facility”), together with the ABL Revolving Credit Facility, the (“ABL Credit Facilities”), both of which had contractual maturity dates in July 2026. The ABL Term Loan Facility was repaid fully in April 2022. We may borrow under the ABL Revolving Credit Facility only up to our available borrowing base capacity. Borrowings under the ABL Revolving Credit Facility bear interest at a rate per annum equal to, at our option, either (1) the base rate plus a margin ranging (based on the availability under the ABL Revolving Credit Facility) from 0.25% to 0.75% or (2) SOFR (subject to a 0% floor) plus a margin ranging (based on the availability under the ABL Revolving Credit Facility) from 1.25% to 1.75%. In September 2024, we amended the ABL Revolving Credit Facility to, among other things, extend the maturity date to September 20, 2029. As of June 28, 2025 and December 28, 2024, we had borrowings of $225,000 and $0, respectively, under this facility. The weighted-average interest rate on the outstanding borrowings under this facility, as amended, was 6.1% and 6.7% per annum at June 28, 2025 and December 28, 2024, respectively.

Previous wording

Additionally, our European ABS Facility provides for a borrowing capacity of up to €375,000, or approximately $405,750, at March 29, 2025 exchange rates. This program, which matures in October 2026, requires certain commitment fees and borrowings incur financing costs based on the local short-term bank indicator rate for the currency in which the drawing is made plus a predetermined margin. At March 29, 2025 and December 28, 2024, we had borrowings of $298,008 and $312,630 under this financing program in Europe. The weighted-average interest rate on the outstanding borrowings under this facility, as amended, was 4.0% and 4.9% per annum at March 29, 2025 and December 28, 2024, respectively.

Current wording

Additionally, our European ABS Facility provides for a borrowing capacity of up to €375,000, or approximately $439,575 at June 28, 2025 exchange rates. This program, which matures in October 2026, requires certain commitment fees and borrowings incur financing costs based on the local short-term bank indicator rate for the currency in which the drawing is made plus a predetermined margin. At June 28, 2025 and December 28, 2024, we had borrowings of $303,957 and $312,630 under this financing program in Europe. The weighted-average interest rate on the outstanding borrowings under this facility, as amended, was 3.8% and 4.9% per annum at June 28, 2025 and December 28, 2024, respectively.

Previous wording

At March 29, 2025, our actual aggregate capacity under our ABL Revolving Credit Facility and other receivable-backed programs was approximately $3,905,266, of which $318,008 was used. Even if we do not borrow or choose not to borrow to the full available capacity of certain programs, most of our trade accounts receivable-backed financing programs are subject to certain restrictions outlined in our ABL Credit Facilities. These restrictions generally prohibit us from assigning or transferring the underlying eligible receivables as collateral for other financing programs, unless the underlying eligible receivables are sold in conjunction with a dedicated, non-recourse facility.

Current wording

At June 28, 2025, our actual aggregate capacity under our ABL Revolving Credit Facility and other receivable-backed programs was approximately $3,939,075, of which $528,957 was used. Even if we do not borrow or choose not to borrow to the full available capacity of certain programs, most of our trade accounts receivable-backed financing programs are subject to certain restrictions outlined in our ABL Credit Facilities. These restrictions generally prohibit us from assigning or transferring the underlying eligible receivables as collateral for other financing programs, unless the underlying eligible receivables are sold in conjunction with a dedicated, non-recourse facility.

Previous wording

We also have additional lines of credit, short-term overdraft facilities and other credit facilities with various financial institutions worldwide, which provide for borrowing capacity aggregating to $841,794 at March 29, 2025. Most of these arrangements are on an uncommitted basis and are reviewed periodically for renewal. At March 29, 2025 and December 28, 2024, respectively, we had $431,087 and $182,713 outstanding under these facilities. The weighted-average interest rate on the outstanding borrowings under these facilities, which may fluctuate depending on geographic mix, was 6.4% and 6.9% per annum at March 29, 2025 and December 28, 2024, respectively. At March 29, 2025 and December 28, 2024, letters of credit totaling $210,398 and $166,613, respectively, were issued to various customs agencies and landlords to support our subsidiaries. The issuance of these letters of credit reduces our available capacity under the corresponding agreements by the same amount.

Current wording

We also have additional lines of credit, short-term overdraft facilities and other credit facilities with various financial institutions worldwide, which provide for borrowing capacity aggregating to $851,548 at June 28, 2025. Most of these arrangements are on an uncommitted basis and are reviewed periodically for renewal. At June 28, 2025 and December 28, 2024, respectively, we had $459,100 and $182,713 outstanding under these facilities. The weighted-average interest rate on the outstanding borrowings under these facilities, which may fluctuate depending on geographic mix, was 5.9% and 6.9% per annum at June 28, 2025 and December 28, 2024, respectively. At June 28, 2025 and December 28, 2024, letters of credit totaling $238,092 and $166,613, respectively, were issued to various customs agencies and landlords to support our subsidiaries. The issuance of these letters of credit reduces our available capacity under the corresponding agreements by the same amount.

Previous wording

We have several uncommitted factoring programs under which trade accounts receivable of several customers may be sold, without recourse, to financial institutions. Available capacity under these programs is dependent on the level of our trade accounts receivable eligible to be sold into these programs and the financial institutions’ willingness to purchase such receivables. At March 29, 2025 and December 28, 2024, we had a total of $738,053 and $737,302, respectively, of trade accounts receivable sold to and held by the financial institutions under these programs.

Current wording

We have several uncommitted factoring programs under which trade accounts receivable of several customers may be sold, without recourse, to financial institutions. Available capacity under these programs is dependent on the level of our trade accounts receivable eligible to be sold into these programs and the financial institutions’ willingness to purchase such receivables. At June 28, 2025 and December 28, 2024, we had a total of $703,466 and $737,302, respectively, of trade accounts receivable sold to and held by the financial institutions under these programs.

Previous wording

We have guarantees to third parties that provide financing to a limited number of our customers. Net sales under these arrangements accounted for less than one percent of our consolidated net sales for each of the periods presented. The guarantees require us to reimburse the third party for defaults by these customers up to an aggregate of$4,471. The fair value of these guarantees has been recognized as cost of sales on the Consolidated Statements of Income to these customers and is included in accrued expenses and other on the Condensed Consolidated Balance Sheets.

Current wording

We have guarantees to third parties that provide financing to a limited number of our customers. Net sales under these arrangements accounted for less than one percent of our consolidated net sales for each of the periods presented. The guarantees require us to reimburse the third party for defaults by these customers up to an aggregate of$4,129. The fair value of these guarantees has been recognized as cost of sales on the Consolidated Statements of Income to these customers and is included in accrued expenses and other on the Condensed Consolidated Balance Sheets.

Previous wording

Our condensed consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States. The preparation of financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the financial statement date, and reported amounts of revenue and expenses during the reporting period. We review our estimates and assumptions on an on-going basis. Significant estimates primarily relate to the realizable value of accounts receivable, vendor programs, inventory, goodwill, intangible and other long-lived assets, income taxes, and contingencies and litigation. Actual results could differ from these estimates.

Current wording

Our condensed consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States. The preparation of financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the financial statement date, and reported amounts of revenue and expenses during the reporting period. We review our estimates and assumptions on an ongoing basis. Significant estimates primarily relate to the realizable value of accounts receivable, vendor programs, inventory, goodwill, intangible and other long-lived assets, income taxes, and contingencies and litigation. Actual results could differ from these estimates.